Demographia: Vancouver is 2nd Worst for Housing Affordability

Posted by under Affordability

Living in the city has always been more expensive. How do Canadian cities compare with the rest of the world?

Demographia has recently published their 9th annual housing affordability survey that looked across 337 markets including Canada. In regards to the results of the Canadian cities, Vancouver ranked second overall only to Hong Kong while Toronto and Montréal were areas of particular concern.

Demographia categorized housing affordability by virtue of a “median multiple” which is in essence the median house price divided by gross tax annual median house income. The ratings and median multiple are below. As a point of reference, Canada’s median multiple 3.6, compared to the rating of 3.5 last year.

  • Affordable = Median multiple 3.0 and under
  • Moderately unaffordable = Median multiple of 3.1 to 4.0
  • Seriously unaffordable = Median multiple of 4.1 to 5.0
  • Severely unaffordable = Median multiple of 5.1 and over
Vancouver’s median multiple stacked up at a hefty 9.5 while Toronto and Montréal hit 5.9 and 5.2 respectively. Demographia cites that the reasons why these cities stacked up so high was due to urban containment regulation, in other words smart growth or densification.
All of this might seem alarming to homebuyers looking to either purchase their new home or relocate to one of Canada’s metropolitan cities, but not to worry! Zoocasa has help ease the stress of homebuyers looking to purchase their home in one of these cities with our many tricks and tools like Ask the ProsZoopraisalMortgage Marketplace and Before You Buy.
Want to read more? The following is an excerpt from anarticle in our Before You Buy section outlining some homeownership basics.

Before you take your first step towards buying a home, it is important to determine what you can afford and then decide which mortgage type works best for you. Here are some of the basic mortgage terms you need to know: Types of mortgages, amortization period, interest rates…

Click here to read more.

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